Comments on: When is Warren Buffett going to fix Moody’s?

By: Moss

Moss — Thu, 19 Mar 2009 15:26:32 +0000

S&P, Moodys are all simply cogs in the institutionalized deception that capitalism has morphed into.
Should GE ever have been a triple A credit? Highly doubtful.

By: wisedup

wisedup — Thu, 19 Mar 2009 00:37:05 +0000

weird, Barry raises a good question can there is little useful discussion. OK. He and others have been focusing on the payment model but there is a bigger more fundamental problem.
Here goes, the rating agency model is completely irrational since the detailed information needed to “truly assess” the health of a company is – of necessity – exactly the information the companies cannot release as it would trigger the demise of the company.
We must assume that in the lifespan of any company there are events that would appear to bring the company close to failure and indeed would cause its failure if the information was made public.
Anyone have any solution?
No wonder Buffet is quiet.

By: gnomic

gnomic — Wed, 18 Mar 2009 18:07:22 +0000

I wonder if, as a now-broke and debt-ridden taxpayer, I have the standing to sue Moody’s and S&P. Of course, if I win, the government will just bail them out and tax me to pay for it.

Makes me wonder how long a cannibal can survive on an island by himself.

By: gnomic

gnomic — Wed, 18 Mar 2009 18:04:56 +0000

@ Bruce in Tn: This same logic could be applied to the earmarks that some are making such a stink about.

By: willid3

willid3 — Wed, 18 Mar 2009 16:34:02 +0000

we are probably more offended by the large amounts to individuals who didn’t really deserve it. it might even make it so that the executive pay issue gets resolved

By: Hal

Hal — Wed, 18 Mar 2009 16:31:55 +0000

Uh–Buffett? I looked at the brk financials and do think he underrecorded his loss on his put position–probably no more than 5 billion or so. Not materal for a company with tangible net worth of 75 billion.

then the matter of talking his book–his life insurance business stands to benefit from keepingestate taxes high and repealing the step up basis at death.

Its nice to be a Presidental advisor. Sames time of dealing with subordinates.

Same true for Jeff Immelt–he became an agent for NBC by booking Obama to the Leno short–which will not harm ratings.

the reality is we have always joked that is who you know, not what you know–the one constant in life.

By: Mark E Hoffer

Mark E Hoffer — Wed, 18 Mar 2009 15:10:53 +0000

mknowles,

the Law of Torts, save the exception, seems to be on hiatus..

Jeff,

speaking of “Home Improves”, you might want to check this:
http://www.eia.doe.gov/cneaf/solar.renewables/page/ghpsurvey/geothermalrpt.pdf

MR,

re: , ’s , yes, it’s, a lot, like that.. ~

By: mknowles

mknowles — Wed, 18 Mar 2009 14:54:39 +0000

why aren’t they in jail? why isn’t this fraud?

By: Mannwich

Mannwich — Wed, 18 Mar 2009 14:49:06 +0000

@Bruce in TN: Of course you’re right but part of the reason this “outrage” has gone viral, I think, is because the bonus issue is far more easily understandable to the average person who doesn’t really pay a whole lot of attention to this stuff. For the average person who feels uneasy about what’s gone on but doesn’t understand the details or its implications, I think it just really hammers home the point of just how effed up the bailouts have been.

By: wally

wally — Wed, 18 Mar 2009 14:27:30 +0000

“The agencies put their seals of approval on countless subprime mortgage-related securities now commonly described as toxic.”

Of course – that’s what they were paid to do. They weren’t paid to be right, just to put their seal on… so they did.